Think Like An Entrepreneur: Effectual vs Causal Reasoning

Think Like An Entrepreneur: Effectual vs Causal Reasoning

Many people wonder what the big difference is between those who are constantly entrepreneurial and those who aren’t. A big part may be in the difference between these two kinds of thought processes.

Causal Reasoning is based on having a goal and defining what means and choices can be made. The opposite, Effectual Reasoning, involves being given the means and choices and defining what the goal is.

If you are interested in entrepreneurship or in working with an entrepreneur, understanding how you approach problems is vital. While I believe some elements of effectual reasoning can be learned, entrepreneurship may not be the best path for you if you find you naturally think causally or strategically.